Social Security Tax (SST)सामाजिक सुरक्षा कर
The social security tax is the 1% charged on the first NPR 1,000,000 of a resident individual's annual income. It is collected through payroll like ordinary income tax, and it is waived for employees who contribute to the Social Security Fund.
Also called: SST, 1 percent tax Nepal, social security tax Nepal
Where it sits
The first band of the annual income tax table carries a 1% rate. That 1% is the social security tax rather than income tax proper, and it applies to the first NPR 1,000,000 of income for a resident natural person.
The SSF waiver
An employee contributing to the Social Security Fund is already funding social security directly, so the 1% is waived for them and the first band is charged at zero. Every band above it is unchanged.
In practice this means two employees on identical salaries can show different monthly TDS purely because one is SSF-enrolled and the other is not. It is not an error in the payroll run.
Social Security Tax (SST), answered
It is the social security tax, charged on the first NPR 1,000,000 of annual income for a resident individual. It is collected through payroll along with income tax.
Employees who contribute to the Social Security Fund. Their SSF contribution covers the same obligation, so the first band is charged at zero for them.
- Income Tax Act 2058 first-band provisions as reflected in lib/nepal-payroll.ts for FY 2083/84.
This page explains general practice in Nepal. It is not legal or tax advice, and statutory figures are revised from time to time. Check the current Act, rule or notice before acting on it.
Put it into practice
Related terms
- Income Tax Slabsआयकर दरNepal's personal income tax is charged at marginal rates across annual income bands. For FY 2083/84 the first NPR 1,000,000 is taxed at 1%, rising through the bands to a top marginal rate of 29%.
- Social Security Fund (SSF)सामाजिक सुरक्षा कोषThe Social Security Fund is Nepal's contributory social security scheme. Employer and employee together deposit 31% of the employee's basic salary every month (11% from the employee, 20% from the employer), and that pool pays out medical, accident, dependent-family and old-age benefits.
- TDS (Tax Deducted at Source)स्रोतमा कर कट्टीTDS is income tax withheld by the employer from an employee's salary each month and deposited with the Inland Revenue Department on the employee's behalf. It is calculated on annual projected income and spread across the year, not charged month by month in isolation.
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